Craig Thomas Rural Hospital and Provider Equity Act of 2016
A BILL
To amend title XVIII of the Social Security Act to protect and preserve access of Medicare beneficiaries in rural areas to health care providers under the Medicare program, and for other purposes.
Sec. 2 Sense of the Senate
Sec. 3 Fairness in the Medicare disproportionate share hospital (DSH) adjustment for rural hospitals
Sec. 4 Reinstatement and expansion of the Medicare hold harmless provision under the prospective payment system for hospital outpatient department (HOPD) services for certain hospitals
Sec. 5 Extension and temporary improvements to the Medicare inpatient hospital payment adjustment for low-volume hospitals
Sec. 6 Extension of the Medicare-dependent hospital (MDH) program
Sec. 7 Reinstatement of Medicare wage index reclassifications for certain hospitals
Sec. 8 Extension of Medicare reasonable costs payments for certain clinical diagnostic laboratory tests furnished to hospital patients in certain rural areas
Sec. 9 Elimination of isolation test for cost-based ambulance reimbursement for critical access hospitals
Sec. 10 Capital infrastructure revolving loan program
“1603. Capital infrastructure revolving loan program
“(a) Authority To Make and Guarantee Loans
“(1) Authority to make loans—The Secretary may make loans from the fund established under section 1602(d) to any rural entity for projects for capital improvements, including—
“(A) the acquisition of land necessary for the capital improvements;
“(B) the renovation or modernization of any building;
“(C) the acquisition or repair of fixed or major movable equipment; and
“(D) such other project expenses as the Secretary determines appropriate.
“(2) Authority to guarantee loans
“(A) In general—The Secretary may guarantee the payment of principal and interest for loans made to rural entities for projects for any capital improvement described in paragraph (1) to any non-Federal lender.
“(B) Interest subsidies—In the case of a guarantee of any loan made to a rural entity under subparagraph (A), the Secretary may pay to the holder of such loan, for and on behalf of the project for which the loan was made, amounts sufficient to reduce (by not more than 3 percent) the net effective interest rate otherwise payable on such loan.
“(b) Amount of Loan—The principal amount of a loan directly made or guaranteed under subsection (a) for a project for capital improvement may not exceed $5,000,000.
“(c) Funding Limitations
“(1) Government credit subsidy exposure—The total of the Government credit subsidy exposure under the Federal Credit Reform Act of 1990 scoring protocol with respect to the loans outstanding at any time with respect to which guarantees have been issued, or which have been directly made, under subsection (a) may not exceed $50,000,000 per year.
“(2) Total amounts—Subject to paragraph (1), the total of the principal amount of all loans directly made or guaranteed under subsection (a) may not exceed $250,000,000 per year.
“(d) Capital Assessment and Planning Grants
“(1) Nonrepayable grants—Subject to paragraph (2), the Secretary may make a grant to a rural entity, in an amount not to exceed $50,000, for purposes of capital assessment and business planning.
“(2) Limitation—The cumulative total of grants awarded under this subsection may not exceed $2,500,000 per year.
“(e) Termination of Authority—The Secretary may not directly make or guarantee any loan under subsection (a) or make a grant under subsection (d) after January 1, 2017.”
“(15)
“(A) The term rural entity includes—
“(i) a rural health clinic, as defined in section 1861(aa)(2) of the Social Security Act;
“(ii) any medical facility with at least 1 bed, but with less than 50 beds, that is located in—
“(I) a county that is not part of a metropolitan statistical area; or
“(II) a rural census tract of a metropolitan statistical area (as determined under the most recent modification of the Goldsmith Modification, originally published in the Federal Register on February 27, 1992 (57 Fed. Reg. 6725));
“(iii) a hospital that is classified as a rural, regional, or national referral center under section 1886(d)(5)(C) of the Social Security Act; and
“(iv) a hospital that is a sole community hospital (as defined in section 1886(d)(5)(D)(iii) of the Social Security Act).
“(B) For purposes of subparagraph (A), the fact that a clinic, facility, or hospital has been geographically reclassified under the Medicare program under title XVIII of the Social Security Act shall not preclude a hospital from being considered a rural entity under clause (i) or (ii) of subparagraph (A).”
Sec. 11 Extension of Medicare incentive payment program for physician scarcity areas
Sec. 12 Extension of floor on Medicare work geographic adjustment
Sec. 13 Recognition of attending physician assistants as attending physicians to serve hospice patients
“(ii) in a subsequent 90- or 60-day period—
“(I) the medical director or physician described in clause (i)(II);
“(II) a physician employed by the hospice program providing (or arranging for) the care or providing care to the individual under arrangement with such hospice program;
“(III) a nurse practitioner employed by such hospice program or providing care to the individual under arrangement with such hospice program; or
“(IV) a physician assistant employed by such hospice program or providing care to the individual under arrangement with such hospice program, provided that an individual described in subclause (I) or (II) has delegated the authority to make the recertification required under this clause to such physician assistant,”
Sec. 14 Improving care planning for Medicare home health services
Sec. 15 Rural health clinic improvements
“(3) in 2017, at $110 per visit; and
“(4) for years following 2017, at the limit established under this subsection for the previous year increased by the percentage increase in the MEI (as so defined) applicable to primary care services (as so defined) furnished as of the first day of that year.”
Sec. 16 Temporary Medicare payment increase for home health services furnished in a rural area
Sec. 17 Extension of increased Medicare payments for rural ground ambulance services
Sec. 18 Coverage of marriage and family therapist services and mental health counselor services under Part B of the Medicare program
“(GG) marriage and family therapist services (as defined in subsection (iii)(1)) and mental health counselor services (as defined in subsection (iii)(3));”
“(iii) Marriage and Family Therapist Services; Marriage and Family Therapist; Mental Health Counselor Services; Mental Health Counselor
“(1) The term marriage and family therapist services means services performed by a marriage and family therapist (as defined in paragraph (2)) for the diagnosis and treatment of mental illnesses, which the marriage and family therapist is legally authorized to perform under State law (or the State regulatory mechanism provided by State law) of the State in which such services are performed, as would otherwise be covered if furnished by a physician or as an incident to a physician’s professional service, but only if no facility or other provider charges or is paid any amounts with respect to the furnishing of such services.
“(2) The term marriage and family therapist means an individual who—
“(A) possesses a master’s or doctoral degree which qualifies for licensure or certification as a marriage and family therapist pursuant to State law;
“(B) after obtaining such degree has performed at least 2 years of clinical supervised experience in marriage and family therapy; and
“(C) in the case of an individual performing services in a State that provides for licensure or certification of marriage and family therapists, is licensed or certified as a marriage and family therapist in such State.
“(3) The term mental health counselor services means services performed by a mental health counselor (as defined in paragraph (4)) for the diagnosis and treatment of mental illnesses which the mental health counselor is legally authorized to perform under State law (or the State regulatory mechanism provided by the State law) of the State in which such services are performed, as would otherwise be covered if furnished by a physician or as incident to a physician’s professional service, but only if no facility or other provider charges or is paid any amounts with respect to the furnishing of such services.
“(4) The term mental health counselor means an individual who—
“(A) possesses a master’s or doctor’s degree in mental health counseling or a related field;
“(B) after obtaining such a degree has performed at least 2 years of supervised mental health counselor practice; and
“(C) in the case of an individual performing services in a State that provides for licensure or certification of mental health counselors or professional counselors, is licensed or certified as a mental health counselor or professional counselor in such State.”
“(v) marriage and family therapist services (as defined in section 1861(iii)(1)) and mental health counselor services (as defined in section 1861(iii)(3));”
“(vii) A marriage and family therapist (as defined in section 1861(iii)(2)).
“(viii) A mental health counselor (as defined in section 1861(iii)(4)).”
Sec. 19 Facilitating the provision of telehealth services across State lines
Sec. 20 Medicare part A payment for anesthesiologist services in certain rural hospitals based on CRNA pass-through rules
“(m) Anesthesiologist Services Provided in Certain Rural Hospitals
“(1) Notwithstanding any other provision of this title, coverage and payment shall be provided under this part for physicians’ services that are anesthesia services furnished by a physician who is an anesthesiologist in a rural hospital described in paragraph (3) in the same manner as payment is made under the exception provided in section 9320(k) of the Omnibus Budget Reconciliation Act of 1986, as amended by section 6132 of the Omnibus Budget Reconciliation Act of 1989 (42 U.S.C. 1395k note) (relating to payment on a reasonable cost, pass-through basis), for certified registered nurse anesthetist services furnished by a certified registered nurse anesthetist in a hospital described in such section.
“(2) No payment shall be made under any other provision of this title for physicians’ services for which payment is made under this subsection.
“(3) A rural hospital described in this paragraph is a hospital described in section 9320(k) of the Omnibus Budget Reconciliation Act of 1986, as so amended (42 U.S.C. 1395k note), except that—
“(A) any reference in such section to a certified registered nurse anesthetist or anesthetist is deemed a reference to a physician who is an anesthesiologist or anesthesiologist, respectively; and
“(B) any reference to January 1, 1988 or 1987 is deemed a reference to such date and year as the Secretary shall specify.”
Sec. 21 Temporary floor on the practice expense geographic index for services furnished in rural areas outside of frontier States under the Medicare physician fee schedule
“(J) Floor at 1.0 on practice expense geographic index for services furnished in rural areas outside of frontier States—For purposes of payment for services furnished in a rural area (other than a rural area located in a State to which subparagraph (I) applies) on or after January 1, 2017, and before January 1, 2018, after calculating the practice expense index under subparagraph (A)(i), the Secretary shall increase any such index to 1.0 if such index would otherwise be less than 1.0. The preceding sentence shall not be applied in a budget neutral manner.”
Sec. 22 Revisions to standard for designation of sole community hospitals
Sec. 23 Medicare treatment of standby and on-call time for CRNA services
“(3) In determining the reasonable costs incurred by a hospital or critical access hospital for the services of a certified registered nurse anesthetist under this subsection, the Secretary shall include standby costs and on-call costs incurred by the hospital or critical access hospital, respectively, with respect to such nurse anesthetist.”
Sec. 24 State offices of rural health
“338J. Grants to State offices of rural health
“(a) In general—The Secretary, acting through the Director of the Federal Office of Rural Health Policy (established under section 711 of the Social Security Act), shall make grants to each State Office of Rural Health for the purpose of improving health care in rural areas.
“(b) Requirement of matching funds
“(1) In general—Subject to paragraph (2), the Secretary may not make a grant under subsection (a) unless the State office of rural health involved agrees, with respect to the costs to be incurred in carrying out the purpose described in such subsection, to provide non-Federal contributions toward such costs in an amount equal to $3 for each $1 of Federal funds provided in the grant.
“(2) Waiver or Reduction—The Secretary is authorized to waive or reduce the non-Federal contribution if the State office of rural health can demonstrate that requiring matching funds would limit its ability to carry out the purpose described in subsection (a).
“(3) Determination of amount of non-Federal contribution—Non-Federal contributions required in paragraph (1) may be in cash or in kind, fairly evaluated, including plant, equipment, or services. Amounts provided by the Federal Government, or services assisted or subsidized to any significant extent by the Federal Government, may not be included in determining the amount of such non-Federal contributions.
“(c) Certain required activities—Recipients of a grant under subsection (a) shall use the grant funds for purposes of—
“(1) maintaining within the State office of rural health a clearinghouse for collecting and disseminating information on—
“(A) rural health care issues;
“(B) research findings relating to rural health care; and
“(C) innovative approaches to the delivery of health care in rural areas;
“(2) coordinating the activities carried out in the State that relate to rural health care, including providing coordination for the purpose of avoiding redundancy in such activities; and
“(3) identifying Federal and State programs regarding rural health, and providing technical assistance to public and nonprofit private entities regarding participation in such programs.
“(d) Requirement regarding annual budget for office—The Secretary may not make a grant under subsection (a) unless the State involved agrees that, for any fiscal year for which the State office of rural health receives such a grant, the office operated pursuant to subsection (a) of this section will be provided with an annual budget of not less than $150,000.
“(e) Certain uses of funds
“(1) Restrictions—The Secretary may not make a grant under subsection (a) unless the State office of rural health involved agrees that the grant will not be expended—
“(A) to provide health care (including providing cash payments regarding such care);
“(B) to conduct activities for which Federal funds are expended—
“(i) within the State to provide technical and other nonfinancial assistance under section 330A(f);
“(ii) under a memorandum of agreement entered into with the State office of rural health under section 330A(h); or
“(iii) under a grant under section 338I;
“(C) to purchase medical equipment, to purchase ambulances, aircraft, or other vehicles, or to purchase major communications equipment;
“(D) to purchase or improve real property; or
“(E) to carry out any activity regarding a certificate of need.
“(2) Authorities—Activities for which a State office of rural health may expend a grant under subsection (a) include—
“(A) paying the costs of maintaining an office of rural health for purposes of subsection (a);
“(B) subject to paragraph (1)(B)(iii), paying the costs of any activity carried out with respect to recruiting and retaining health professionals to serve in rural areas of the State; and
“(C) providing grants and contracts to public and nonprofit private entities to carry out activities authorized in this section.
“(3) Limit on Indirect Costs—The Secretary may impose a limit of no more than 15 percent on indirect costs claimed by the recipient of the grant.
“(f) Reports—The Secretary may not make a grant under subsection (a) unless the State office of rural health involved agrees—
“(1) to submit to the Secretary reports or performance data containing such information as the Secretary may require regarding activities carried out under this section; and
“(2) to submit such a report or performance data not later than than September 30 of any fiscal year for which the State office of rural health has received such a grant.
“(g) Requirement of application—The Secretary may not make a grant under subsection (a) unless an application for the grant is submitted to the Secretary and the application is in such form, is made in such manner, and contains such agreements, assurances, and information as the Secretary determines to be necessary to carry out such subsection.
“(h) Noncompliance—The Secretary may not make payments under subsection (a) to a State office of rural health for any fiscal year subsequent to the first fiscal year of such payments unless the Secretary determines that, for the immediately preceding fiscal year, the State office of rural health has complied with each of the agreements made by the State office of rural health under this section.
“(i) Authorization of appropriations
“(1) In general—For the purpose of making grants under subsection (a), there are authorized to be appropriated such sums as may be necessary for each of fiscal years 2017 through 2021.
“(2) Availability—Amounts appropriated under paragraph (1) shall remain available until expended.”
Sec. 25 Removing Medicare 96-hour physician certification requirement for inpatient critical access hospital services
Sec. 26 Extension of enforcement instruction on supervision requirements for outpatient therapeutic services in critical access and small rural hospitals through 2017
Sec. 27 Medicare payment for certain rural health clinic and Federally qualified health center services furnished to hospice patients
“(E) Subparagraph (A)(ii) shall not apply to—
“(i) physicians' services furnished by the individual's attending physician (as defined in section 1861(dd)(3)(B)), if not an employee of the hospice program;
“(ii) services provided by (or under arrangements made by) the hospice program; or
“(iii) rural health clinic services (as defined in paragraph (1) of section 1861(aa)) and Federally qualified health center services (as defined in paragraph (3) of such section) if such services—
“(I) would otherwise be physicians' services if furnished by an individual not affiliated with a rural health clinic (as defined in paragraph (2) of such section) or a Federally qualified health center (as defined in paragraph (4) of such section); and
“(II) are—
“(aa) furnished by the individual's attending physician (as so defined), if not an employee of the hospice program; or
“(bb) provided under arrangements made by the hospice program.”